Corporate social responsibility (CSR) refers to an organisation\'s duty to opera

Question

Corporate social responsibility (CSR) refers to an organisation's duty to operate in an honourable manner, provide good working conditions for employees, encourage workforce diversity, be a good steward of the environment and actively work to better the quality of life in the local communities where it operates and in society at large. Acting in a socially responsible manner thus encompasses more than just participating in community service projects and donating monies to charities and other worthy social causes. Discuss your understanding on the term CSR and whether you believe it is important to for organisation to report on their CSR activities in the annual report. Use examples to illustrate your answer.

Explanation / Answer

Organization is responsible and accountable to multiple stakeholders who are directly or indirectly influenced by the organization’s operations and practices. This responsibility is referred to as Corporate Social Responsibility(CSR). The stakeholders for an organization include customers, business partners viz. suppliers, contract manufacturers, distributors etc., shareholders, investors, company board of directors, employees, general public, government and regulatory authorities etc. Hence, the actions of an organization affects one or more stakeholders. This makes it important for the organization to be responsible and ethical in its practices, processes and operations.

Sustainability and CSR reporting is exhaustive in clearly stating the company’s initiatives towards sustainability and various measures that project the firm’s CSR activities. This creates a goodwill for the organization in the minds of public and other organization's stakeholders.

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